Fears surrounding the economic consequences of the COVID-19 pandemic continued to plunge North American stock markets on Thursday.
The Toronto Stock Exchange’s S & P / TSX composite index dropped 1,307.43 points, or 9.2%, to 12,962.66 points in the early afternoon, after posting a decline of nearly 1,600 points more early in the session.
The plunge in the Toronto and American markets at the start of the day was pronounced enough for trading breaks to be automatically triggered.
Stock markets were already under pressure in recent weeks due to concerns over COVID-19, but losses picked up again this week after Saudi Arabia increased oil production in a war of price with Russia.
A bear market is usually defined as a loss of 20% from a recent peak. The TSX is now down 28% from its record high of 17,970.51 points on February 20.
Thursday’s dip comes after U.S. President Donald Trump made a television announcement on Wednesday evening about the coronavirus, which did not seem to reassure investors.
Trump announced travel bans to Europe to limit the spread of the virus, and spoke of tax cuts and other economic stimulus plans, but did not provide details.
The decline of the Toronto prosecution was widespread.
The action of Royal Bank lost $ 7.59 to $ 80.28, while that of Enbridge erased $ 5.33 to $ 37.63. The title of BCE fell from US $ 5.40 to $ 52.62.
In New York, the Dow Jones industrial average fell 1069.50 points, or 4.5%, to 22,483.72 points. The broader S&P 500 index returned 124.43 points, or 4.5%, to 2,616.95 points, while the Nasdaq composite index erased 380.79 points, or 4.8%, to 7,571.26 points.
On the currency market, the Canadian dollar was trading at 72.41 cents US, down from its average price of 72.75 cents US the previous day.
On the New York Stock Exchange, the price of crude oil fell from US $ 1.98 to US $ 31.00 per barrel, while that of gold fell US $ 61.80 to US $ 1580.50 l ‘ounce. The price of copper depreciated by 4.15 US cents to US $ 2.4605 a pound.